What Causes Missing Participants?

Missing participants are caused by a combination of factors that include:
  • Employee turnover / job-changing: DC plan participants change jobs 10 times over the course of a 40-year career. Each year, 14.8 million DC participants will change jobs
  • Relocation: Americans will move almost 12 times over the course of a lifetime. In any given year, almost 1 of every 6 Americans will relocate.
  • Mortality: 16% of plan participants will die between 40 and 65. One of six participants die prior to normal retirement age
  • Lack of retirement savings portability: Barriers to portability result in high volumes of cashouts, plus a growing number of accounts that are “stranded” at job change
  • Plan features and changes: Auto enrollment increases the number of small-balance and “unknown” accounts, particularly at low deferral rates. In addition, events occur that change key elements of the plan, such as company mergers, acquisitions, name changes, recordkeeper transitions, etc.

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